| Resources |
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Buckley Dodds Chartered Accountants
1140 - 1185
West Georgia Street
Vancouver, B.C., V6E 4E6
Phone: (604) 688-7227
Fax: (604) 681-7716 |
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| Tax Rates |
| Tax Income |
Salary/Other Income |
Capital Gains |
Dividends |
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2003 |
2004 |
2003 |
2004 |
2003 |
2004 |
| $1 to $30,484 |
22.05%
|
22.05% |
11.03% |
11.03% |
4.52% |
4.52% |
| $32,477 to $35,000 |
25.15% |
25.15% |
12.58% |
12.58% |
8.40% |
8.40% |
| $35,001 to $64,954 |
31.15% |
31.15% |
15.58% |
15.58% |
15.90% |
15.90% |
| $64,955 to $70,000 |
33.70% |
33.70% |
16.85% |
16.85% |
19.08% |
19.08% |
| $70,001 to $74,575 |
37.70% |
37.70% |
18.85% |
18.85% |
24.08% |
24.08% |
| $74,576 to $90,555 |
39.70% |
39.70% |
19.85% |
19.85% |
26.58% |
26.58% |
| $90,556 to $113,804 |
40.70% |
40.70% |
20.35% |
20.35% |
27.83% |
27.83% |
| $113,805 and over |
43.70% |
43.70% |
21.85% |
21.85% |
31.58% |
31.58% |
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| Individuals Marginal Rates
for 2007 |
| These tables show your combined federal and provincial (or federal
and territorial) margin tax rate – the percentage of tax you
pay on your last dollar of income, or on additional income. |
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| Taxable Income $9,027 to $120,887 |
Provincial
Brackets
Below
$9,027 are not shown |
Brackets |
Ordinary
Income and Interest |
Capital Gains |
Non - eligible
Dividends |
Eligible
Dividends
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| British Columbia |
9,027 |
21.20% |
10.60% |
3.46% |
(19%) |
| $34,397 |
24.15% |
12.08% |
7.15% |
(5%) |
| $37,178 |
30.65% |
15.33% |
15.27% |
(5%) |
| $68,794 |
33.10% |
16.55% |
18.33% |
8.8% |
| $72,000 |
37.10% |
18.55% |
23.33% |
20.4% |
| $74,357 |
39.00% |
19.50% |
25.71% |
20.4% |
| $78,984 |
40.70% |
20.35% |
27.83% |
22.6% |
| $95,909 |
43.70% |
21.85% |
31.58% |
24.3% |
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| Eligible dividends are designated as such by the payor. They are
grossed up by 45% and include dividends paid by: |
- Public corporations or other corporations or other corporations
that are not Canadian-controlled private corporations (CCPC’s),
that are resident in Canada and are subject to the federal general
corporate income tax rate (i.e. 22.12% in 2007): or
- CCPC’s, to the extent that the CCPC’s income is:
- not investment income (other than eligible dividends from public
corporations): and
- subject to the federal general corporate income tax rate (i.e.
the income is active business income not subject to the federal
small business rate). |
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Non-eligible dividends are grossed up by 25% and include dividends
paid out of either income eligible for the federal small business
rate or a CCPC’s investment income (other than eligible dividends
received from public corporations).
When two dividend rates are indicated, the lower rate has a negative
federal and/or provincial/territorial component. A negative federal
component shelters other income from federal tax and a negative provincial/territorial
component shelters other income from provincial/territorial tax. As
a result, depending on the level of other income, the combined federal
and provincial/territorial rate could be higher, but will not exceed
the higher rate shown, which applies if the taxpayer has no other
income. |
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| Corporate Tax |
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| Tax year ending on: |
With SBD only ² |
NO SBD no M&P |
With M&P only |
CCPC |
CCPC less RDTOH ¹ |
| 31 Dec -06 |
17.62% |
34.12% |
34.12% |
47.79% |
21.12% |
| 31 Dec -07 |
17.62% |
34.12% |
34.12% |
47.79% |
21.12% |
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- This rate represents the effective tax rate on investment income
of CCPC after the RDTOH and dividend refund mechanism have been
taken into consideration.
- Active business income earned in Canada by a CCPC up to $300,000
for 2005 and 2006. This increases to $400,000 at December 31,
2007 and the additional $100,000 is prorated for the number of
months in 2007.
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| Individuals Marginal Rates
for 2006 |
| Federal and Provincial Income Taxes Payable by Individuals
at various levels of Taxable Income for 2006 |
| 2006 |
British Columbia |
| $1,000,000 |
$420,566 |
| $500,000 |
$202,424 |
| $400,000 |
$158,742 |
| $300,000 |
$115,042 |
| $250,000 |
$93,192 |
| $200,000 |
$71,342 |
| $150,000 |
$49,492 |
| $100,000 |
$28,191 |
| $90,000 |
$24,162 |
| $80,000 |
$20,192 |
| $70,000 |
$16,483 |
| $60,000 |
$13,304 |
| $50,000 |
$10,189 |
| $40,000 |
$7,074 |
| $30,000 |
$4,506 |
| $20,000 |
$2,376 |
| Top Marginal
rates: Canadian dividends |
| (non-eligible) |
31.58% |
| (eligible) |
18.47% |
| Capital gains |
21.85% |
| Other income |
43.70% |
| Dividend
tax credit |
| (Non-eligible) ¹ |
18.43% |
| (eligible) ² |
30.97% |
Maximum value of
Additional credits ³ |
21.30% |
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- Taxpayers in top brackets (i.e. taxable income above $118,285)
who receive Canadian non-eligible dividends can determine their
tax by multiplying the dividend tax credit by the amount of non-eligible
dividends (grossed up by 25%) and subtracting the result from
the amount of tax shown in the table. For example, an Alberta
resident with $250,000 taxable income consisting of $240,000 salary
plus $10,000 of grossed up non-eligible dividends ($8,000 actual
dividends) will pay the $85,748 tax shown, less 19.33% of $10,000,
yielding $83,815.
- Taxpayers in top brackets (i.e., taxable income above $118,285)
who receive Canadian eligible dividends can determine their tax
by multiplying the dividends can determine their tax by multiplying
the dividend tax credit by the amount of eligible dividends (grossed
up by 45%) and subtracting the result from the amount of tax shown
in the table. For example, a Manitoba resident with $200,000 taxable
income consisting of $185,500 salary plus $14,500 of grossed-up
eligible dividends ($10,000 actual dividends) will pay the $78,366
tax shown, less 29.97% of $14,500, yielding $74,020.
- When personal tax credits, in addition to the personal tax credit,
are available, the results in this table are too high. For taxpayers
in the top tax bracket of their jurisdictions, the amounts can
be adjusted by subtracting the product of the percentage indicated
(maximum value of additional credits) and the amount of each credit.
Charitable donations over $200 have a higher maximum value.
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